Energy and ESG Can Co-Exist

RBC’s Chris Beer and Brahm Spilfogel are bullish on energy stocks, even as they adapt to ESG principles.

Michael Ryval 15 July, 2021 | 3:03AM
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Oil slick

Energy stocks took it on the chin in 2020 when the coronavirus pandemic struck and demand for energy plummeted. But as global economies regained their footing and many companies adopted better fiscal discipline, the sector bounced back in late 2020, and has continued to rebound this year. Meanwhile, in response to growing demand for adherence to environmental, social and governance (ESG) principles, some energy providers have demonstrated their commitment to less-polluting energy sources such as wind and solar, in addition to looking at measures of recapturing carbon dioxide through underground storage.

“The oil market trades about 100 million barrels a day and overnight demand dropped 35%, down to 65 million barrels,” says Chris Beer, vice-president at Toronto-based RBC Global Asset Management (GAM), and co-manager of the $188.4 million RBC Global Energy F, which carries a silver, 5-star rating. A geologist by training, Beer has been in resource asset management since 2000. “There was nowhere for the oil to go and you had to pay someone to take it away. OPEC [Organization of the Petroleum Exporting countries] realized it had to do something to balance the market.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
ConocoPhillips77.03 USD0.00Rating
Equinor ASA ADR28.02 USD0.00Rating
RBC Global Energy Fund F46.69 CAD1.04Rating

About Author

Michael Ryval

Michael Ryval  Michael Ryval, a regular contributor to Morningstar, is a Toronto-based freelance writer who specializes in business and investing.

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